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- in reply to: Gold Enters Major Bull Market #2801
Gold $652.60
This a day that saw gold firm to $659.50, only to be beaten back in a hurry to just below the $651 level.
This type of market activity is the style of the anti-gold market participants. These guys want to make price, they are not much interested in trading for big profits as a normal trader would be. Their main gig is to play with your mind by frightening you in an attempt to get you to sell.
This is a excellent day to be watching them closely and observing what they do. The Philadelphia Gold & Silver Index(XAU) has been laboring for a few days now. It is suspected that there is a fair amount of shorting in the gold stocks by them over the past few days. The key area for putting pressue on the Index is the 139 to 142 zone, which they are doing.
If this area is surmounted then the gold shares would have a nice run and our little friends will get their fingers burnt. If not and they have their way, the Index could drop to the 130.00 level or so.
All these contrary moves by the group will be short lived as it is most difficult to fight with a bull market. In a bull market you buy weakness not sell strength, that’s a fool’s game. When the bull market in gold and gold shares is ready to resume following their current resting periods these people are going to be toast again.
The XAU has been in a consolidation area for the past 12 months. The last three major pushes in the Index started once a minimum resting period of 12 months had been met. The average appreciation on those three advances was a minimum of 100% each.
The current shorting of gold shares and messing with the paper gold market appears to be just another act of desperation from a power base that is swimming in a pool of fiat currencies. In the end, the miscreants are in store for the shock of their lives.
in reply to: Gold Enters Major Bull Market #2800Gold $645.70
Two great articles to check out.
“A Massive Transfer of Wealth”
321gold.com/editorials/vaneeden/vaneeden012107.html“The Gold Price-Fixing Conspiracy”
321gold.com/editorials/casey/casey013007.htmlin reply to: Clips from Alleghany #2797Lots of activity at the mine. The 1000-foot level crew has successfully spiled through a large cave in, which had them concerned. Safety was not the issue. If they could not hold back the pile of broken quartz and wall rock, footage progress would come to a stand still. All is well. What faces them ahead is about 300 feet of minor track clearing and then the grand daddy of all blockages. Ian and Mike plan to work their way around the cave in by going up to the 600 foot level and then back down to the 1000. No one knows how long the level is blocked. One option is to drill a new tunnel in the footwall to by-pass the work of spiling.
Mike drove through town with his truck full of two-inch poly pipe (used for compressed air). Seems the detector located a hot signal well beyond the present utilities. Scoop could see the miners unrolling the bundles of pipe in the sun and then dragging 500-foot lengths into the portal. Let’s hope it’s a good bunch of gold. Inventory must be running low.
David and Rae finished pricing inventory. David panned about forty ounces of gold dust from his saws and polishers. The year-end crush went to the high-grade mill on Monday. A forty-ounce bar was poured from the chips or remainders that wasn’t useable for jewelry. Bluejay says gold hit $650 so gold valued about $50,000 was mailed from the little Alleghany post office.
in reply to: Clips from Alleghany #2799Here I read my nname and about the good news and the pipestuffs. Good, we need it. Jus becuse its long do. I Dont know what is the $ price or why it is, but why wory sinse ist still gold and down there anyway and ythe guys will fid it.
in reply to: Gold Enters Major Bull Market #2798Gold $656.80
In the comments that were submitted last night some basics in regards to the Philadelphia Gold & Silver Index(XAU) were omitted.
An excellent chart of the XAU can be viewed by going to the website http://www.bigcharts.com. The last sale on the XAU today is 141.09.
When you get there enter the symbol XAU and select basic chart. Later you can select any time period you would like, 1 day to ALL DATA from the box in front of basic chart. Usually, a good enough picture of what you want to see can be found on a two year chart.
I enjoy working with charts and have been doing so for many years. As Sir Isaac Newton once said, “Truth is ever found in the simplicity, and not in the multiplicity and confusion of things.”
Charts are recorded days and parts of days of price activity from the interactions between, potentially, millions of people around the globe.
Unfortunately today with all the hedge funds in operation and the government’s meddling in the free market system, students of the chart world need to be more vigilant.
For those of you who might be interested, there is an excellent article in the archives of financialsense.com written by Frank Barbera, CMT.
The article, “The Coming Bull Market in Gold Stocks” was submitted on April 14, 2005.
The bottom line according to Elliott Wave Analysis which is interpreted by Mr. Barbera is that significant gains will be made by gold shares in the years ahead.
How about an 8500% gain by 2018? Repeat, an 8500% gain by 2018. Check out the article, it’s a real thriller.
in reply to: Gold Enters Major Bull Market #2796Gold $652.80
Gold is again today attempting to better chart resistance in the general area of $650. It remains to be seen if the precious metal can firmly surmount this area on this try.
In today’s news the Eminent Person’s Committee is recommending that the IMF sell 400 tons of their 3,217 metric ton position in gold to basically balance their books and to create income. A few members of this Committee are chairman Andrew Crocket of J.P. Morgan, Alan Greenspan former head of the FED and Xhou Xiaochuan a governor of the People’s Bank of China.
Isn’t it interesting that the recommendation comes on a day of strength in the gold price as it is approaching a resistance level.
It is understood why Greenspan and Crocket want the price lower as they are some of the talking heads of the anti gold community, the miscreants. Zhou Xiaochuan probably doesn’t want gold up because it depreciates all of China’s vast holdings in dollars. China in recent years has been exchanging dollars for natural resources, mainly, in Africa. When gold rises it generally causes lower purchasing power for them.
When the gold price is firmly established above $650 the gold stocks will shine.
The Philadelphia Gold and Silver Index(XAU) has been discussed in this section before with the relevance of the 150 level. The Index is composed 16 gold and silver stocks.
The stocks in the Index are included here from the highest market capitalization to the lowest:
1- Barrick Gold Corp.
2- Newmount Mining Corp.
3- GoldCorp Inc.
4- AngloGold Ashanti Ltd.
5- Freeport-McMoran Copper & Gold
6- Gold Fields Ltd.
7- Harmony Gold Mining Co. Ltd.
8- Kinross Gold
9- Agnico Eagle Mines Ltd.
10- Meridian Gold Corp.
11- Bema Gold Corp.
12- Pan American Silver Corp.
13- Silver Standard Resources, Inc.
14- RandGold Resources Ltd.
15- Coeur D’Alene Mines Corp.
16- Royal Gold, Inc.The 150 level on the XAU has basically pushed back all advances in the last 20 years with the exception of a short lived 170 price spike. During 2006 the XAU has made 6 futile attempts to get above this troublesome chart level.
Prior to 2006, over this long time span another four futile attemps were made at crossing and staying above the 150 level.
Some years back the Dow Jones Industrials had a difficult time during a 20 year period bettering the 1,000 level. In 1983 the averages finally broke through and the rest is history with a last of 12,621.69.
The 150 level on the Philadelphia Gold & Silver Index is all psychological. It has been an area where certain anti gold groups have fought fiercely to contain prices. The investing public weighs gold in the form of gold stock performance, not too much in the metal. Mainly, because the metal is too expensive and they get more shares than ounces to feel good about.
It is also more exciting than holding the ounces for the reason, who knows how much gold can be discovered in a mine or on an exploration property? People are basically optimistic and a gold stock could “really deliver” for them with a big find.
When the anti gold forces go to work, it their desire to cause gold share owners as much pain as is possible. Usually after they get a big short position all kinds of news is coordinated to take gold and thus the gold shares lower. When investors lose money on gold stocks they basically lose confidence in gold. This is the objective of the anti gold camp.
What happens if the miscreant’s efforts to suppress gold shares fails? Then the current under priced gold stocks would rocket. How do we know when this process starts? It all begins when the XAU Index starts sprinting above the 150 level.
The important thing for owners of gold shares to remember is, when we enter these money making days share price volatility could be a nerve wracking experience for you, so be prepared.
Remember, according to Mr. Sinclair gold is going to a minimum of $1,650. Hang in there and stay the course!
in reply to: Miscellaneous #2795Scoop has the answer for you Martin. Yes, Foote was a key mining man in Alleghany and Grass Valley. On this web site GO to Forum topic “From the Sixteen Archives”, Page 3, to 02/25/2004 by Michael Miller and you will find a most interesting story.
in reply to: Miscellaneous #2794Who can tell me if Foote who
built the Foote Crossing road
had anything to do with manage-
ment of the Empire mine? I understand the he went broke
building it.in reply to: Miscellaneous #2793Just turned the computer on and am shocked and saddened to learn of Al’s death. I doubt that any Alleghany hard rock miner or any people familiar with the history of mining during the 1970’s through 1996 won’t feel sadness about this news. His training was old school. He practiced old school mining ethics as long as I knew him and from what I heard all his life. His greatest legacy may be the many young men who worked under his strict guidance. Some ran from his demands, but I am sure that those who survived under his supervision, as well as those who fled, gained some great lessons in life from the experience. We always said, Al, that gold was in the next round. You believed it and I believe it. Maybe now you know.
in reply to: Miscellaneous #2792Death of a young Old Timer:
“Albert Lee Wasley, 74, died Thursday, Jan. 25.” Although I did not know Al real well my brief association was indeed a pleasure. Dorothy and I had a quick education on hard rock and “under the cap” placer mining after meeting him in the winter at the Henness Pass turnoff. Later he showed me the complications of trying to get gold out of the Ruby. It was sad to see the Ruby so mismanaged that he had to leave. The obituary is in the Union today (Sat. 1/27/07)in reply to: Ideal Time for Facts #2791What a dunce I can be.
The following three people are public servants working in Sacramento as lawyers. Tom Green’s title is “Chief Assistant Attorney General”. Under his supervision is Mary E. Hackenbracht. Her title is Senior Assistant Attorney General. I have no idea if the adjective “Senior” implies she is at the top of the hierarchy, just below Tom Green. Are their “Junior Assistant Attorney Generals”? Finally William N. Brienger signs on as a “Deputy Attorney General”. Are all three participants involved in the decision to launch an Amicus Brief against the parties damaged by lawlessness. After all, the top name on the list is Bill Lockyer, who signs on as “Attorney General of the State of California”. Did William write it, investigate its merits or initiate the action? Did Tom and Bill read prove and sign off before submitting the document to the appeals court?
Here is why I raise the above questions. The document says its position supports the lawless defendants. It recognizes that a law was broken. Then quickly words jump into a general assertion that the reason for filing the brief is “to assist district attorneys”. The writers want “to underscore the importance of prosecutorial immunity in fostering unflinching and impartial law enforcement”. I have no problem nor does our case bump against those goals. Immunity, however, is qualified that it must be “unflinching and impartial law enforcement”. The brief does not say unflinching or impartial. It says unflinching and impartial. The actions of the defendants broke laws. The actions of Gale Filter, et al., proved not to be impartial upon reviewing the grand jury transcript. Also documents in the Superior Court filings in Sierra County provide evidence that their impartiality was more wide spread than merely withholding exculpatory evidence.
It is a big leap to believe that Tom and Bill failed to stop the misguided position of their co-signed brief. But, what about Mary? As Senior Assistant, does she report to Tom? Does her position require a review over a Deputy Attorney General? Can a Deputy Attorney General file a brief in the Appellate Court on his own without a final review?
If you want to read the full amicus of the attorney general, it follows below . If anyone out there can help with the answers to these questions about the chain of accountability and responsibility, please educate me.
Now to the question of money, which was asked in the entry before this. The amicus brief comments that a lot of money is at issue. In the Statement of the Case it tells the appellate court that our suit seeks over $51 million. Yes, a recovery of that or a lesser amount can fund the mine’s development. I cannot recall determining this amount but certainly support its legitimacy. What if the suit sought $200 million or $1.00? Does the amount affect “unflinching and impartial law enforcement”? With so much written about case before the appellate judges, why did William fill his limited space with $51 million in damages?
Okay, I admit that this is a hard entry to read; however, remember the above named people are your public servants, who earn their salary by working for your best interests. Remember also, its all for the right to mine, the mine and its shareholders. So, get informed. Cut down some ignorance and help me learn. If you do not want to respond on the FORUM, do it with a feedback click.
in reply to: Gold Enters Major Bull Market #2789Gold $646.30
Recently I came across a 2005 article written by Mr. James Sinclair and thought it appropriate to post as companies and individuals try to cope with changing times.
Sunday, October 09, 2005, 7:11:00 PM EST
Jim Sinclair’s Commentary
All the safety nets and entitlements seeded in fertile fields by Franklin D. Roosevelt to underpin the U.S. economic system are being withdrawn to make way for Authoritarian Free Enterprise. In truth, this is no more radical than it was for FDR in the first place.
Roosevelt required a higher price of gold and deflation to accomplish his social ends. To eliminate the modern social programs, the progeny of Roosevelt’s social strategy – a long term and much higher price of gold – will be required. Deflation in terms of debt is the mechanism by which both corporate and Federal entitlements will for all practical purposes be eliminated.
Social Security and Medicare will remain but the goal post of qualification will be raised as services are constrained. That is elimination in practical terms, making way for Authoritarian Free Enterprise to live long beyound your wildest dreams.
I believe it is best to understand what is happening because in today’s world there is no willingness to oppose this trend. Today’s pampered youth is corrupt and indolent. We libertarians and freedom loving people are like a generation from another planet in the eyes of the history disrespecting wunderkinds. The rest of “OUR CROWD” have sold their souls to the devil.
In the reprint of Delphi Employees Face Uncertain Future due to its bankruptcy filing on the same day Mr. Sinclair prefaces the article with the following:
Authoritarian Free Enterprise is attractive to some and ugly to others. The management feathers its own nest, the employees can take a flying leap. Retirement funds will be transferred to a quasi-government guaranteed corporation that will reduce benefits, increase the level of qualification and in time bust the retirees by the collapse of buying power of dollars promised. Here is how the practical elimination of corporate entitlements takes place. The old saying “As goes motors so goes the US” will again prove itself prophetic.
Gold is the true barometer for the growing Authoritarian Free Enterprise which is engulfing Americans.
It is occurring slowly and only one in a million people in the public sector is truly aware of what is happening.
Even though gold has been strong lately it is not too late to consider a program of buying on weakness and replacing dollar denominated items for the safety of gold.
Last night I did some work with the long term monthly chart on gold and it is clearly indicating prices of $800, $900 and $1000 for completion of its second phase in this major bull market. This should all be accomplished by the end of 2008.
On the short term, gold is being pushed lower today from around the $650 area where the hedge funds and the expected miscreants are feeding off minor chart resistance.
in reply to: Clips from Alleghany #2790Thanks for sharing.
I enjoyed reading Part 1 looking forward to Part 2
Thanks again,
Jeff
in reply to: Clips from Alleghany #2788Draft received from a recent interviewer of Michael Miller that may appear in a yet to be identified publication. January 22, 2007. Part One
Q: More stories about gold are appearing as gold increased in value last year. Are we in another new American gold rush?
A: I wouldn’t call it a new rush but there is definitely an upturn in interest. The mother of all historical gold rushes took place in California between 1848 and 1852. In modern times the current interest is a continuation of “the rush” unleashed on December 31, 1974, when gold was economically freed from government suppression. Today the general public has yet to participate even though we see more references to gold than a few years ago.
Q: How do you follow the gold markets?
A: I keep up with gold and other natural resources thanks to magazines, newsletters and newspapers, web sites or articles on the Internet, friends or acquaintances in the various industries and other sources. I enjoy reviewing company reports and SEC filings. My interest goes beyond what should be required of a president in the natural resource industry. I’m curious. My macro- economic belief is that our natural resources contribute to the liberties and freedoms the entire world cherishes. There are potential global impacts, significance for Americans and important local consequences that touch many people.
Q: While it seems simple, the realm of gold has a complex history. What single advice pops into your head to offer someone outside the gold market wanting to get in?
A: The rules are the same whether its gold or technology: go into gold with an open mind and teach yourself through study. I started that way thirty-two years ago. My family background, formal education and life-long experiences make me a risk taker but a careful one. Emotion gets in the way sometimes. The counterpoint to risk is reward. The ability to evaluate these two components is crucial with today’s gold investment options. Whether it is an investment in time, energy or money, a formula may be constructed to analyze various choices and opportunities. There are unfamiliar terms in gold mining with unclear definitions to deal with. You want a quick single concept to embrace: ponder the downside risk and upside potential.
Q: Why have you devoted thirty years to the mines in Alleghany?
The relevance of mining, natural resources and gold to our present and future well-being makes me a Sixteen to One bull. I recognized the potential quickly back in 1974. Our experiences continue to confirm my early impressions. I don’t want to go into a lot of history now; however what has taken place in Alleghany and the Sierra Nevada Mountain range is awesome. It sometimes takes my breath away just to have an interest in keeping this culture alive. While economic growth (stock appreciation) is an important goal, so is acquiring physical gold as a personal possession. This opportunity really puts Original Sixteen to One Mine in a very special and small category of gold stocks. The little guy, like me and others, has a chance to participate in something exciting.
Q: In reading your history you seem to always have plans that require money but you rarely actually go outside to get it. Why?
A: We prefer to finance our growth and development by mining gold. The Company’s fortunes turn in a single shift, so as long as we are breaking rock, fortune may tap us on the shoulders. Other reasons are more pragmatic. In order to declare a gold dividend the division of ownership must be manageable. It is. The more shares outstanding, the more difficult to divide excess gold into a meaningful amount. I monitor our gold inventory, cash flow and daily underground mining progress to quantify the risk/reward scenario. In conversations with Ian Haley, the mine manager, and the crew I gain a sense of production and what is ahead of us. My actions are to push it, in other words “risk evaluation” is a constant part of the job. It changes almost daily. Last week on the 1000 foot-level, we found a gold showing in the down-dip side of the vein. We slabbed the rock. It revealed a very nice display of gold, more than first look. Now we have the choice of proceeding with the level rehabilitation or interrupting that heading and sink on the gold. Each has a risk and each has a reward. No one knows but right below us less than a week away could be enough gold to finance our Red Star project from this production.
Q: You mentioned unfamiliar mining terms earlier. Give us some common ones and some that may be unfamiliar or poorly defined.
A: I used the term “down-dip” in describing where we found gold on the 1000-foot level. First, the dip is the angle that a bed, stratum or in this case a vein is inclined from the horizontal. Down-dip tells the direction of the incline. Its opposite would be up-dip, although this term may not be used throughout the mining industry. Mining districts develop their own terms over time, so there can be confusion of meanings even between experienced miners. For the non-miner who is trying to get a grip on evaluating gold companies, the first concept they must deal with is reserves. The Alleghany Mining District is very fortunate because the gold deposit cannot be qualified or quantified using a reserve projection. The investor today is barraged with reports about proven reserves, probable reserves, possible reserves, inferred reserves and a resource. Whew! Believe me, these terms are not interchangeable but many exploration companies as well as others lump them together. I think it is done to fuel great expectations for those seeking a play in the gold industry.
Q: Why should individuals or other entities be interested in the Sixteen to One operation and give some examples?
A: An important fact in evaluating the likelihood and meaning of meeting the two goals (stock appreciation and gold distribution) is the number of outstanding shares. This is a very important statistic for comparing all corporations. On December 31,2003, there were 12,867,250 shares issued and outstanding. The number remained the same on December 31, 2004 and December 31, 2005. Dilution was nil. The upcoming December 31, 2006, number increased by 118,204 to 12,890,204 shares issued and outstanding. This small increase was due to a stock conversion for debt, money owed a shareholder who helped purchase the Gold Crown mine in 2005, directors’ fees and a long overdue account payable. For a company that has been financially handicapped, it avoided dilution just to keep the operation going. We are not fueling our operation by selling stock. We are one of very few small gold companies that actually mines gold for its cash flow.
Q: Is a gold dividend a fluff concept or for real?
A: It is for real. One of our past directors, Lee Erdahl, was a director of Ranchers Exploration and Development Corp and became its president after the untimely death of Maxie L. Anderson. Mr. Anderson paid a gold and silver dividend. It may be the first declared in kind dividend by a public corporation. I find it an inspiring accomplishment. As of today, a gold dividend of a quarter ounce per 1000 shares would require 3,250 ounces of disposable gold. This is a realistic number for the Company to meet.
Another requirement necessary to declare a dividend is the company must be debt free. Ours was debt free for half of the 1990’s. It was debt free by mining and selling gold, not by selling stock. It also paid a $0.05 per share dividend in 1995, the first dividend in thirty-five years. For most of its corporate life the owners were generously compensated with an annual dividend and the company was debt free and met its annual cash demands. Tax laws were different but with an “in kind- pro rata distribution”, the onus of double taxation will not be a factor in distributing profit. A goal of a gold dividend is for real.
in reply to: Gold Enters Major Bull Market #2787Rick
The best advice you can give your friends is to start reading the free daily posting at http://www.jsmineset.com.
There is no better source for a good education on gold.
The site is like an ongoing classroom. Your friends will have to access past postings to get caught up.
in reply to: Gold Enters Major Bull Market #2786Often I get asked what to do about investing in gold, friends interested and curious, and I try to explain that finding it is better, and certainly a kick in the ass.
This inevitably baffles them and I refer whoever asks to this site.
in reply to: Gold Enters Major Bull Market #2785Gold $635.40
Gold appears to be ready to continue moving higher following its last 21 day resting period that was discussed here on January 9, 2007.
The following was posted on the jsmineset.com website by Mr. Jim Sinclair today, January 19, 2007 at 5:16:00 PM EST:
GOLD AND DOLLAR MARKET SUMMARY
Gold, Silver, the USDX, Euro and Crude
Gold closed on a high note with some firmness in crude and increased inflationary figures. The U.S. dollar seems to be in a potential rollover while the Euro appears to be in a potential roll up. Silver has been playing hard around the Fib support/resistance line at $12.84.
All that adds up to a potential shot at $648 to $652 which, if accomplished, leads directly to $682. You know my feelings about this period as a platform for a significant up move in gold. That move would simply be an introduction to what will occur in 2007 and 2008.
So we end this week on a high note. Next week will be interesting.
in reply to: Gold Enters Major Bull Market #2783Gold $626.00
The following was written by Dan Amoss, CFA editor of Strategic Investment in January of 2007:
The U.S. is the Richest Country in the World. You don’t say, but how come…?
Shocking CIA Report Reveals America’s True Standing in the World!
Recenty, a shocking CIA report came into our hands. It ranked nations based on their current account balances. You know…what’s coming in versus what’s going out…aka the balance sheet or cash flow.
If the flow is positive, you’re creating profits or surpluses. If it’s negative, you’re pilling up debt, using up more of your budget to pay the interest on your debt, and borrowing more to keep it going!
As the self proclaimed “richest nation on Earth,” can you guess where America is on the list? First? Third? Twenty-Fifth? Let’s take a look.
#1 is Japan – $165 billion-plus
#2 is China – $164 billion-plus
#3 is Germany – $115 billion-plusI don’t have the space to give you a country-by-country listing, but to summarize…you have the oil-producing countries of the Middle East and South America…then Hong Kong – $20 billion-plus, Algeria – $18 billion-plus…and around here the countries start to slide into deficits.
The countries in Africa, the banana republics of Latin America, Australia, India…followed by the third-worst country – the U.K., at a $57 billion dificit…then Spain, second from the bottom.
But what country is last? Dead last, with double the deficit of all the other nations of the world combined? You probably guessed. America, with its $829 billion dificit!
in reply to: CDAA Conduct #2784Rick and Bluejay, thanks for your views. My turn now.
I also am in the business world, dealing with a cornucopia of issues and events in the fields of gold production, environment, public-reporting companies in an American market and global economic powers. I possess no illusions about how insignificant the gold mines of Original Sixteen to One Mine are perceived. But, are they? My goals are very simple: find and sell gold in order to issue an in-kind gold dividend or distribute profits in dollars. I want physical gold in my possession and believe a profitable Sixteen to One is the way to go. Along this path, a competing goal may prove to be a better idea: build assets, increase value and support long term capital appreciation.
I won my first lawsuit in my first six months of business (1965). My partner and I were defendants. I won my second lawsuit in 1973. I was a plaintiff suing a stockbroker, who wrote my sell order as a buy ticket for Polaroid options. I only won a little money because the judge ruled that I did not “mitigate” my losses by immediately selling the options. I didn’t know about mitigating and believed I never owned the extra options because of his mistake. I learned an important legal lesson, one that I have incorporated into my practice and certainly documented in the CDAA prosecution.The Barrick/ Blanchard deal is puzzling. There is more to this settlement than has been released. Barrick’s lawyers may have been more skillful, smarter or unethical. Blanchard may have been foolish to trust its lawyers or ill advised. The point is that none of this collapsed Barrick’s, appeal in the marketplace. If one were to read the 10-Q or 10-K of many reporting companies, he would find under the heading “legal”, many lawsuits. A serious analysis of those in which the companies are defendants is appropriate. The outcome could be negative. When a company is a “plaintiff” a lawsuit could be either modesty relevant or significantly important. If the case has a chance of succeeding and scoring some bucks, it is a positive disclosure. Lloyds of London is the insurer for defendants. We are “plaintiffs”. It is positive.
Is CDAA a powerful association of lawyers? I hope so. The more powerful the more likely its strongest members (elected district attorneys of California’s 58 counties and their deputies) will realize how damaging the performances of Filter, Hedum, Denise, and Patchett were to the lawful practice of law. A greater number of lawyers than what we would like to believe have questionable ethics, little integrity, a lot of arrogance and litle respect for their profession. Americans and and others are really tired of their bull. I know some really good people who are lawyers. As I have written before, four of my personal lawyers went on to become judges. They are not corrupt nor do they break the law. I cannot say the same for the defendants in our case.
When the facts and evidence become fully known, most of the CDAA and the California State Bar (perhaps, jury still out on this one) and the California Attorney General will likely ride the bad guys out of the state. If they do not, Californians will have before them a succinct example of how far the system has decayed.
Now as for the money or business perspective: Our suit is not consuming corporate money or time. When we were defending ourselves as accused criminals, it did. There was no choice. Shareholders and the general public are blessed and fortunate that our front men, George Gilmore and Klaus Kolb, are lawyers of the highest caliber. They are not taking this for strictly money reasons. They love the law and hate injustice. We are also fortunate that a number of lawyers, great men and women, also support this case and help us achieve victory.
There are a lot of points, issues, facts, laws, and strategies that I cannot publicly discuss with you. I wish I could and will think about this possibility for a while. You would crack up at how well we have orchestrated this suit. I’m sure the bad guys think they are really something for stalling the case with the volumes of their legal “gobbeligook”. They are arrogant and full of themselves. We are smarter, more dedicated and have, as Rick would say, “the truth” going for us.
Our plaintiff’s lawsuit is not stopping any serious investor, be it the $100 or $3 million person. I know this to be true.
If I am wrong, I know how to fix the problem.There is no better deal in gold investments than becoming associated with our company. All we need is exposure to prove it.
in reply to: CDAA Conduct #2782Hi Rick
You are a true loyalist to the mine and one that deserves respect with your passion to defend her.
I come out of the business world. I am interested in profits. In investing I make my mistakes, I learn from them, I adjust and I go on.
I have spent thousands of dollars dealing with attorneys usually with dismal results.
When you are attacked by attorneys for whatever reason it is just bad luck. It affects your health and it reduces your wealth.
My wife was a juror on a trial that saw a group of local apple farmers from Sebastopol sue the Bank of America for breach of contract in Santa Rosa, California in 1985.
The trial took months and was quite a strain on our family and the farmer’s families. In the end the jury awarded the farmers millions of dollars and up to that time it was the largest jury award against a U.S. corporation. Months later a special group of appellate judges reversed the jury’s decision and the jury’s awards. The sad fact is that the jury only followed the judge’s instructions. What else were they suppose to do?
What I’m expounding is that when you are dealing with a powerful company or group of lawyers it’s never over until they say it is. Not something our forefathers had in mind for us.
In the past pages on the Forum I have pointed out what happened in a New Orleans court between Blanchard and Company and Barrick Gold some years back. Blanchard actually proved their case against Barrick but a loophole let them off the hook. Barrick said that they were an agent of the central banks and were immune from prosecution.
Blanchard was fighting for holders of gold and the gold mining companies who had suffered from Barrick’s suppression of gold’s price for years with the sale of borrowed gold.
Yes, the Sixteen to One was damaged by the CDAA.
It is my contention that waging war against powerful people, although totally justified, will prove to be futile while it drains our resources.
Living in the world today is far more complex than it was years ago and so is the legal system.
Unless you have a battery of lawyers and a pocket full of money, it is far better to lose a battle as opposed to engaging a battalion of attorneys along with the possibility of legal uncertainties.
The Board has elected to pursue the CDAA. I respect them for their passion, along with Mike’s relentlessness and personal expense, but my life experiences indicate that the percentages are not on their side. As a shareholder, I hope I am wrong and wish them well.
In the meantime, potential investors will keep their distance as litigation continues.
in reply to: CDAA Conduct #2781Bluejay, that’s a tough one to contain, hoping to keep the passion inside the bottle. As far as I can figure, passion has gone to the line to see justice and posture.
Usually I’m tagged with writing from an ideal philosophy without regard to reality, but I’m also a pragmatist. If the hooligans run the machine, it should stop…and if they’re trying to run the machine, they should be stopped along the way of their attempt.
My gut tells me that the true investor out there, those who need to be involved in the next chapter in Alleghany mining potential, will inevitably be confronted by the de-railers…a.k.a. this time around the CDAA…and need to stand against it with maximum fortitude, and describe its territory and potential realistically (not diluted by crap litigants), even if the current climate suggests that it’s a deterent to investment.
I say, those sitting by and watching aren’t strong enough. Those potential investors who have the stones to ignor the litigation, (let’s not forget it’s pro-active) have a true window.
Bluejay, I believe I understand who you speak of, and believe not a stranger to the mine. I speak of those who are yet to be part of this; personally, and we may disagree, but I believe it an asset, showing the fortitute to defend the existing potential; and don’t think that attempting to de-rail those who try to de-rail the mine is ill conceived.
In other words, either we bow down or go bold.
in reply to: CDAA Conduct #2780Empirical evidence suggests that as long as we are involved in litigation our company will continue to be viewed with indifference by prospective investors.
The CDAA is a pack of rattlesnakes. This venomous organization has allowed some of their cohorts to degrade the savings of people who elected to invest in the Company in good faith.
The legal system in this country is basically fixed. To a significant degree, even the short and intermediate term markets are as well.
The trick is knowing this and acting accordingly. We are in a land of declining rights and increasing injustices. Not something our forefathers had in mind for us.
in reply to: Clips from Alleghany #2777Scoop met and talked with each of the Sixteen crew today in the mine, down the mine, up the mine, in the shops, around the surface and through the office. Whew! David has processed about forty ounces of sawdust from the rock saws. Looked like he was also preparing some merchandise for mailing. Kyle commented how Fed Ex and UPS arrived at the same time with packages: parts for a gas tester, drill parts and some strange red thing. Rae was having computer problems so was working on various projects including the copy machine. The copy machine repairman came. Felix the newest stray office cat attacked his leg (friendly like) and bit through a wire on the copier. Fortunately the guy liked cats. Felix was very entertaining. Do maintenance contracts cover cat bites?
Ian was running the hoist for a daylong repair in the 49 winze near the 1300 station. Britt and Ernie were in the winze with some timbering materials. Chico and Matt were helping on the 1000 level while they waited for smoke to clear in their round. They are mining for gold south of the Tightner Shaft. Good luck, boys. Reid was working on the phone communication. First found him on the 800 level. Later heard him phone check at the north face on the 1000 level. Reception wasn’t very good but he will fix the problem. A miner was running a 12B-mucking machine at the cave in on the 1000 level. Joe was hauling the waste with the 1 ½ ton trammer. The support guys (Aaron and Wade) will put a slick sheet down for a second car to use. The outside man was welding to get another trammer ready. The mine has six locomotives. He just fixed Mike’s tailgate, which had been falling off recently. Found Mike crawling up a raise from the 1000 level to the 600 level. Traveled with him out the 600 level way north and back to the 800 station where the pumps were discharging an impressive amount of water. Glad you asked.
in reply to: Gold Enters Major Bull Market #2776Gold $612.30
Michael
A few years back deals were made between our government and Japan to increase the outstanding amount of dollars as Japan ended up supporting the dollar. An immense amount of these dollars continues floating around seeking a good home.
A good portion of the dollars have found their way into the stock market. This extra dollar liquidity injection was massive. The event has been labeled “Bernanke’s Helicopter Drop.”
Inflation is the abnormal increase in the volume of money and credit with a continuing rise in prices. To answer your question, yes rising prices in the DOW are supported by inflation in action.
In regards to gold and stock prices trading inversely during the 1980’s, it could have happened as a result of an investor safety issue. Although gold was legalized again in 1974 I don’t see the opposite relationship working during the 80’s as interest rates were higher than they are today coupled with the generally weaker gold prices.
I believe the only meaningful comparison between stock prices and gold is how many ounces of gold you can buy with the value of the Dow Jones Industrial Average(DOW). When the ratio of ounces of gold you can buy compared to the DOW is shrinking the wealth factor of the Dow is declining. When the DOW continues to buy more ounces of gold then the wealth factor of the DOW is increasing. Currently, being in the stock market, albeit it is at a high, compared to the advancing wealth factor in gold is questionable.
Apparently, the only major relevance gold and the stock market have today is that they are both recipients of the growing money supply. Somewhere ahead in time, money will come out of the stock market and flow into everything gold as a result of the growing government and personal debt issues along with the unprecedented amount of outstanding OTC derivatives which is approaching $400 trillion.
For those that are willing to closely inspect the handwriting on the wall, we are approaching conditions similiar to the late 70’s that ignited the price of gold.
The feeling here is that unless you have a good percentage of your wealth in gold and gold stocks and a very low percentage in debt and debt related issues(including stocks other than precious metal stocks, government bonds and savings accounts) you will not survive the financial tsunami that will eventually be upon us during this decade.
The price of gold has been declining for about three weeks. The last two meaningful short term metal advances began following three week declining periods.
in reply to: Clips from Alleghany #2775Hey Scoop, give us some news, eh? We’re wilting out here!
in reply to: Clips from Alleghany #2774I do not believe Richard Holman
to be a relative of Joe Holman
as I was told that no relative
of Joe worked at the Sixteen.in reply to: Miscellaneous #2773Okay is the operative word. The Sixteen to One gang does okay all the time, even when they were down to three miners and part time paper pushers. It is a very resilient bunch; however I know Mike is not happy with the balance of fixed overhead and production (which he measures in footage not gold). With his unknown gold revenue it is nerve racking to hit the right size of payroll. The mine’s largest crew was 60. He thinks a good balance for the current operation would be half that. There are fourteen now, which is why he and Ian decided to begin a new hiring program: build the crew methodically.
The 1000-foot level rehab is the primary heading. Another crew is back south of the Tightner Shaft drifting in the footwall vein where the last production was located. The 1000 level crew is at a point where serpentine hanging wall has caved. It will be slow going for about 100 feet.
in reply to: Miscellaneous #2772Boy thats ruff. Are they making it o.k with the amount of hands there is now. What is the gold finding stats? Thanks
in reply to: Miscellaneous #2771Well., anonymous, Scoop has a answer to your question.
Three men were offered a training program. One left the first day. Two completed the forty-hour program. One started the next week. The other asked for and was granted a week delay to arrange affairs. The guy who started, worked two days and asked for a half day off to take care of some business. He hasn’t been back. The other guy never showed up again. No phone calls, nothing. Can’t fire someone who never started. Word from Ian and Mike is that it wasn’t the job; they just picked the wrong guys. Interviews can be misleading.
Scoop’s opinion: the drive was too much. Better luck with people who live closer to mine.
in reply to: Miscellaneous #2770According to the Idaho Maryland
website there are 44 permitted
mines in Calif. including our
16to1. The Alleghany district has produced 50+ mill.dollars over the yearsin reply to: Miscellaneous #2769Hope your search found some good new hands? Whats new underground?
Any gold? Thanks for the neat webpage you have. 16 to 1 has been a big part of history for this area.in reply to: Miscellaneous #2768Since the volitile topics that have occupied this forum venue for the last six years have come to a volitile rest (AKA court appeals and junk and crap and stuff and junk and crap, although we know the truth, always have…thanks Mike), then this is an appropriate time to introduce the distinction of a Gold Star to the 1621 for survival, for perseverence, for continued success busting rock in the good fight leading to good leads, for the picture above and David’s graces and insight with the saw, for the dream of keeping this going.
I also offer the topic title as a suggested name for the new shaft, the new potential discovery over there north of the Tightener.
The other reason I’m writing was prompted by a call from a dear friend who mentioned that I hadn’t recently written to this forum with the passion that drove me so hard in the past few years. The reason is quite simple: the bad guys are in retreat, and I don’t see a need to challenge them right now where they need a hot poker in the ribs, not wasting the poker. It’s said that when an idiot (or and entity) makes an ass of themselves, watch and let them speak. When silence ensues, they’ll most likely make a bigger ass of themselves. So, we watch and see a bigger ass soon.
Brevity, (silence in this case), is the sole of wit.
Here’s to Gold Stars!
in reply to: Gold Enters Major Bull Market #2767In years past gold appears to
have been used as a hedge aga-
inst inflation and general
world strife and tumult. It
appeared that when gold went
up the mining companies went
up but faster, especially the
“Kafirs” (so. africa) Even
deBeers would move the same.
Now, with ETFS those vehicles
seem to move with the metal
price AND with other stock issues.Gold, Silver and Diamond
ETFs are all up right with the
other (stk) market.in reply to: Gold Enters Major Bull Market #2766Bluejay, thanks again for your references. You prompted me to write a paper on shares outstanding and market capitalization that will compliment your last entry. I’ll post it if it makes any sense. Would you give us your opinion about the following? (For new readers, Bluejay had a seat on the Pacific Stock Exchange and is knowledgeable about the stock market. Don’t know when he began to take gold seriously.)
With the DOW hitting all time highs is that a sign of inflation? Pundits in the 1980’s claimed that gold and stock prices worked in opposite directions. When stocks increase, gold drops. I never understood the logic behind this. Do you? Also does a comparison of the stock prices and gold prices have relevance today? As you look back (and I know you are a terrific chartist) does gold lead the DOW or visa versa? Is there any relationship between the two?
I think that gold has outgrown some of its “inflation” moniker and “in time of war” reality. Buying power could be one motivation for including gold in ones portfolio. What do you think?
in reply to: Gold Enters Major Bull Market #2765GOLD $627.50
Bloomberg.com
December 27, 2006
“Gold Takeovers Reach Record As Companies Fail To Find New Mines.”
writer: Choy Leng YeongThe following are a few excerpts from this article:
Mines are being depleted faster than new reserves are being found.
Cost of (takeover) reserves rose to $120 an ounce in 2005.
Last month when GoldCorp acquired Glamis, it paid $175 for each ounce of reserves.
GoldCorp’s president, Ian Telfer, said the lack of new supply will help boost gold prices by $200 an ounce over the next two years to top $800.
in reply to: Clips from Alleghany #2764Martin:
Was Joe Holman any relation to Richard Holman of Sonora, Calif. who worked for a short time at the 16:1 mine? Richard was a very interesting person and had some really good stories to tell. He owned the foundary in Sonora and was a friend of John Hiezer who also had many good 16:1 stories.in reply to: Clips from Alleghany #2763As our British brothers say:
“Good Show” in 2007!!in reply to: Clips from Alleghany #2762For Yuma’s Info. I do know a
family in GV named Kuhwarth.
Not from Alleghany though. A
Kuhwarth son is married to the
daughter of Joe Holman who was
a dynamite man in the Empire
mine years ago. I do know of
two ladies living in Yuba City
and Penn Valley who were born
in Alleghany.in reply to: Clips from Alleghany #2761Mr. Miller confided in Scoop, who gets to edit his ramblings. He is moving towards the Red Star mine. Management has verified gold along the strike from Rainbow mine to Sixteen to One mine, to Tightner mine. The previous company employed crew quit in 1965. Its OME loan dried up, as did the miners. The Red Star was their last target for survival as an operating mine. Mike believes that a pocket is deposited in the ground the crew will be exploring or developing. He has data that leads him to estimate the range of $5,000,000 to 10,000,000 (spot bullion value) as highly likely.
His “reserves” (quartz and gold previously mined) are being cashed into money to meet the approximate $90,000 monthly burn figure. Management has about five weeks of reserves to cover expenses. It’s too much math for Scoop, but the situation is: if no more gold is found in five weeks, the company can meet payroll. The future looks pretty good. Five weeks of working capital! Five weeks generated by the gold already in the bank, a value which is more valuable than reserves. Will five weeks be long enough to break into a high grade gold pocket?
On Friday the reported advancement along the 1000 foot level was thirty feet for the day. At a burn rate of $90,000 in a twenty-day month, a day costs $4,500 or $150 a foot.
Scoop’s take on current affairs:
1. the target and the pursuit are well justified.
2. everything else related to company affairs are very positive.in reply to: Clips from Alleghany #2759Wishing everyone at the Sixteen to One a Very Merry Christmas.
Would Love to hear about Mike’s last Trip to The Brown Bear Mine some of his pasted trips have been let’s say Entertaining.Jeff Smith
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